Context
Law firm Stewarts has published an inaugural annual Policyholder Review, outlining key issues and developments in legal disputes in relation to insurance. At a total of 152 pages, it contains some detailed analyses of insurance-related legal actions during 2024. The publication sets out that the findings from the review confirm that insurance litigation will continue to be among the fastest-evolving dispute fields in England and Wales as novel points of law will be established and tested.
Although founded in legislation rather than regulation, this publication is likely to be of interest to underwriters, any intermediaries involved in the design of policy wordings or clauses, and claims specialists looking for guidance about how the courts might interpret policy wording and constriction in the event of litigation.
Key points to note and next actions
Themes addressed in the report include cyber risks, warranty and indemnity, property damage and business interruption, construction, financial and professional risk, war and political risk, and costs and funding. There is also a series of 18 articles analysing the reasons for court decisions in a range of cases involving the risks covered in the publication. In particular, the publication explores:
- potential precedents for disputes over cybersecurity coverage arising from Covid-19 business interruption insurance litigation, in the absence of precedent cyber cases;
- how businesses will need to manage cyber risk and maximise their potential protection through insurance;
- the rise in cladding and fire safety insurance disputes in the aftermath of the Grenfell tragedy and the wider implications for the construction industry;
- what companies and directors need to know about Warranty and Indemnity (W&I) insurance in 2025 and its potential limits, and Directors and Officers (D&O) insurance issues including on Directors’ duties and ESG;
- what recent case results, including aviation litigation following Russia’s invasion of Ukraine, mean for war and political risk insurance in a growingly uncertain world; and
- the next steps for the long-running Covid-19 B1 saga.